Small Business CGT Concessions Webinar Series

Step by step guide to working though the small business CGT concessions

Recorded 10, 17 & 24 September 2020

Individual Recording Series

What prevents clients from accessing the concessions and the solutions
Maximise tax effectiveness and planning
A methodical & practical approach to the Small Business CGT Concessions

The small business CGT concessions are very generous for those who meet the relevant conditions. However, the rules can also be very complex and difficult to apply in practice and claims made under the concessions are at a high risk of being reviewed by the ATO. Also, recent changes to the rules mean that extra tests need to be satisfied to access the concessions in some cases.

This 3-part series focuses on the key aspects of the small business CGT concessions in a methodical and practical way. Across the series we cover a wide range of issues including the problem areas that often prevent clients from accessing the concessions and the solutions that might make the difference, maximising the tax effectiveness of the concessions, planning opportunities for clients who are thinking of selling business assets, and preparing clients for a CGT audit.

Ideal for senior accountants and above. Valuable to anyone who needs to grasp the pragmatic impact and application of the small business CGT concessions.

FPA Accreditation: 23103, 23104, 23105 (3.75 CPD hours)

Member Recording 
Individual Recording Series
Office Recording Series

What we cover

Web 1

The Grouping Rules & Other Essential Concepts

Before applying the basic conditions to access the small business CGT concessions, it’s important to work through the various grouping rules. Understanding these rules is vital as they can have a significant impact on whether an asset can pass the active asset test, whether a taxpayer can pass the $6m net asset value test, and whether a taxpayer can pass the $2m turnover test. 

We also explain the concepts of a significant individual and CGT concession stakeholder and what this means in practice. These are relevant whenever a company or trust wants to apply the retirement exemption or 15 year exemption or whenever a taxpayer is selling shares in a company or units in a trust. 

This webinar works through a series of practical issues accountants & advisers face:

  • The control rules that apply to companies, partnerships, fixed trusts and discretionary trusts
  • What the courts have said recently about applying the control tests to discretionary trusts
  • The special rules that can apply when the control percentage is between 40% and 50%
  • How to determine whether an entity is an affiliate of another entity
  • The special rules that apply to spouses and how this can make the difference between accessing the concessions and missing out altogether
  • How to determine whether someone is a significant individual or CGT concession stakeholder of a company or trust
  • How different share classes can make life very difficult and what can be done about it

FPA Accreditation 231043
Total 1.25 CPD hours
Regulatory compliance & consumer protection = 0.5
Technical Competence = 0.75

Web 2

Passing the Basic Conditions

A number of basic conditions need to be satisfied in order to access the small business CGT concessions. Unless these conditions can be satisfied, clients cannot utilise the concessions to reduce their capital gains. 

This is where a lot of mistakes are made and where the ATO often focuses its audit and review activities when assessing claims made under the small business CGT concessions.  

The aim of this webinar is to ensure that practitioners are comfortable working through the various tests to know what information needs to be gathered, maintained and analysed. 

Some of the specific issues we explore include: 

  • Applying the active asset test to assets that are used for mixed purposes
  • Determining whether shares in a company or units in a trust are active assets
  • The new tests that need to be met when dealing with shares in a company or units in a trust;
  • Dealing with connected entities and affiliates when applying all the basic conditions
  • What assets and liabilities need to be taken into account under the $6m net asset value test
  • Planning opportunities in relation to the $6m net asset value test
  • When the $2m turnover test can be used by a taxpayer holding passive assets
  • The CGT concession stakeholder test and 90% test explained in plain English

FPA Accreditation 23104 
Total 1.25 CPD hours
Regulatory compliance & consumer protection = 0.25
Technical Competence = 1.00

Web 2

Applying the Concessions in Practice

What happens after the basic conditions have been satisfied? This webinar works through the extra conditions that must be met to apply specific concessions and discusses strategies to maximise the tax outcome for clients. 

The rules contain strict requirements dealing with the extraction of capital proceeds from a company or trust that has made a capital gain. We address the practical issues that need to be considered and opportunities for extracting the funds in the most tax efficient manner. 

This webinar includes:

  • How to determine whether an event happens in connection with someone's retirement for the 15 year exemption
  • What assets qualify as replacement assets under the small business rollover rules
  • Options for dealing with the tax liability that might be triggered when the small business rollover expires
  • The ATO's views on making in specie contributions of assets to superannuation in relation to the 15 year exemption and retirement exemption
  • Strategies that can be considered when clients are approaching age 55
  • Utilising the lifetime CGT cap within the super contribution rules

FPA Accreditation 23105 
Total 1.25 CPD hours
Regulatory compliance & consumer protection = 0.25
Technical Competence = 1.00

Our Presenter

Michael Carruthers

Tax Director, Knowledge Shop

Michael oversees the development of the tax team for Knowledge Shop and Hayes Knight in Sydney and is head of the Hayes Knight group’s national tax committee.

Michael has a knack for seeing through the complexity and helping practitioners work through highly technical issues with certainty and accuracy.

Michael is a member of the advisory panel for the Board of Taxation and is a member of the reference group for the Board’s review of small business concessions. He was also an expert panel member for the Board’s review of tax impediments facing small business.

Michael Carruthers
Michael Carruthers
Tax Director, Knowledge Shop

Register

Individual Series

$490 Member
$590 Non-member

Office Series*

$1,095 Member
$1,220 Non-member

 *The office rate applies per office location (maximum temporarily increased to 20 participants per office location). The PD points for all attendees will be recognised.

How to access the recording

  1. Knowledge Shop members, access your discounted pricing by logging into the Knowledge Shop member website and registering. More on membership.
  2. For Individuals:
    • Register and we will email you your access details to Knowledge Shop's IQ platform (generally within 24 - 48 hours).
    • Your recording and any successive recordings you purchase will display on your personal profile.
  3. For Offices (access for up to 10 individuals from the same firm): 
    • Register and we will contact you to organise login details for your nominated staff members (generally within 24 - 48 hours).
    • You can also nominate a supervisor from your firm who will be able to see who has completed the webinar and where applicable, their quiz scores.
  4. Your recording will be available for 3 months from the date of purchase and can be viewed as many times as the registered person likes within those 3 months. Once watched, your PD hours will be recorded on the personal profile of the participant. 

Terms & Conditions 
All registrations to Knowledge Shop events are subject to our terms and conditions which include a cancellation policy. No refunds are available for webinar recordings once the Knowledge Shop IQ platform has been accessed.  Refunds are only possible if the webinar recording has not been accessed.